The Hindu Business Line : Maharashtra State to have Rs 265-cr surplus budget

The coming financial year will see a revenue surplus of Rs 265 crore, according to the State Finance Minister, Mr Jayant Patil, making his budget presentation for 2005-06 here on Monday.

The size of the budget plan is fixed at Rs 11,000 crore. For the financial year 2004-05, the economy of the State has grown at a rate of 13.8 per cent, with the Gross State Domestic Product growing at a rate of seven per cent. Attributing the turnaround in the State's finances to higher tax collections, Mr Patil said, "The revenue receipts for the year 2004-05 were estimated to be Rs 40,394 crore. As per the revised estimated these are now estimated to be Rs 42, 883 crore and for 2005-06 these are estimated at Rs 50,430 crore."

The budget has allocated Rs 1,000 crore for the development of Mumbai city this year. The funds would be utilised on infrastructure and mass transport projects, which are now being undertaken by the Government.

Mr Patil has also proposed a new Fiscal Responsibility Bill in the current session of the legislature.

The Bill will lay down a framework to restrain the Government from spending in a profligate and fiscally irresponsible manner. It will be in line with the proposals of the 12th Finance Commission. To strengthen the budget management mechanism, a system of monthly cash flow has been proposed in the budget.

In order to reduce the burgeoning debt of Rs 1,10,211 crore on the State Government, the average interest rate which was 12.70 per cent per annum has been brought down to 9.77 per cent in the estimates of 2004-05 and it is estimated to fall to 9.33 per cent in the coming financial year.

The State has also swapped its high cost debt of Nabard, thus bringing down the average debt cost further.

To augment the State's exports, 44 new infrastructure projects worth Rs 550 crore will be taken up with Central assistance. Under the provisions of the Electricity Act, 2003, the restructuring of Maharashtra State Electricity Board will be completed by June 10.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page